The Ann Arbor City Council emerged from another closed session Tuesday night and once again delayed making a decision on whether to purchase the Edwards Brothers property on State Street for $12.8 million.

The council has called a special meeting to make a final decision next Monday. The meeting will start at 7 p.m. inside city hall, 301 E. Huron St., and is expected to include another closed session with the city's legal staff.

The deadline for the city to notify Edwards Brothers whether it will exercise its right of first refusal on the property at 2500 S. State St. is next Wednesday, according to a memo City Administrator Steve Powers sent to council on Tuesday afternoon.

The University of Michigan Board of Regents has an item on its agenda for this Thursday to purchase the property for $12.8 million, based on terms worked out between Edwards Brothers and the university months ago. That deal can go through only if the city waives its right of first refusal.

The city has had its attorneys and other staff members aggressively looking into the city's options in recent weeks in hopes of keeping the property on the tax rolls by flipping it for a private development.

Powers released an eight-page memo on Tuesday indicating the city has been approached by a number of developers, including one that would purchase the property from the city for $12.8 million to develop student housing.

City Administrator Steve Powers addresses the City Council Tuesday night.Ryan Stanton | The Ann Arbor News

The city also has received an offer from a developer that would purchase the property from the city for $10.3 million for a commercial or mixed-use development with retail along the State Street frontage. It's possible the land would be divided for separate ownership under that proposal.

"Although discussions with developers are ongoing, and there have been many inquiries about the property, the types of terms being offered do not provide the city with guaranteed funds to support the purchase of the property," Powers wrote in his memo, noting there is a possible negative impact in every scenario, except where the benefit of the taxes to all taxing jurisdictions is taken into account.

Edwards Brothers is paying more than $180,000 in annual taxes on the property, and a future redevelopment could increase the taxable value even more. Mayor John Hieftje said Tuesday night the city is looking out for not only itself, but also the interests of all other taxing jurisdictions in the county.

Edwards Brothers paid $144,785 in summer 2013 taxes on the property, including $63,531 that went to schools, $4,757 to the library, $44,179 to the city, $6,310 to the Ann Arbor Area Transportation Authority, $10,612 to Washtenaw Community College, $13,963 to Washtenaw County, plus $1,434 in administrative fees.

The property tax bill for winter 2013 was another $37,428, with $32,917 going to Ann Arbor Public Schools, $2,188 to county parks, and smaller amounts to county initiatives such as veterans relief and economic development.